MO-5090 - Missouri Department of Revenue

Form
MO-5090
Missouri Department of Revenue
Net Operating Loss Addition Modification Sheet
Enclosure Sequence No. 1120-08
Corporation Name Missouri Tax I.D. Number Charter Number Federal I.D. Number
Year of Loss
Year of Modification
Complete this worksheet to compute the net operating loss (NOL) addition modification, pursuant to Section 143.431.4, RSMo. See back for instructions.
Use this form if the corporation reported a net operating loss deduction on Federal Form 1120, Line 29a or on Federal Form 1139 or Federal Form 1120X
for carryback years and in the year of the initial loss, used the loss to offset Missouri net positive additions. If both do not apply, there is no net operating
loss modification to compute. If both apply, then complete the net operating loss modification worksheet. If the NOL deduction is the sum of multiple years,
you must complete a Form MO-5090 for each loss year.
Column 1 Column 2 Column 3 Column 4
Modificatons
1. Net operating loss deduction used in the current year.
(Enter as a positive amount.)
2a. State tax addback
2b. State and local bond interest (except Missouri)
2c. Fiduciary and partnership adjustment
2d. Missouri depreciation basis adjustment
2e. Donations claimed for the Food Pantry Tax Credit
3. All required additions to federal taxable income, except for the
net operating loss modification: add Lines 2a, 2b, 2c, 2d, and 2e
4a. Interest on U.S. Government obligations
4b. Federally taxable — Missouri exempt obligations
4c. Reduction in gain due to basis difference
4d. Previously taxed income
4e. Amount of any state income tax refund included in federal
taxable income
4f. Capital gain exclusion from the sale of low income housing
project
4g. Fiduciary and partnership adjustment
4h. Missouri depreciation basis adjustment
4i. Net operating loss carryback previously disallowed for Missouri
4j. Depreciation recovery on qualified property that is sold
4k. Build America and Recovery Zone Bond Interest
4l. Missouri Public-Private Partnerships Transportation Act
5. All required subtractions from federal taxable income:
add Lines 4a through 4l
6. Net addition modification (but not less than zero):
Line 3 less Line 5
7. Total net operating loss from the Loss Year
___________ (Enter as a positive amount.)
8. Net operating loss deductions utilized in all prior years
(Enter as a positive amount.)
9. Cumulative sum: Line 1 plus Line 8
10. Sum: Line 6 plus Line 9
11. Amount: Line 10 less Line 7 (but not less than zero)
12. Net operating loss modification: lesser of Line 1 or Line 11.
Enter the amount here and on Form MO-1120, Part 1, Line 3.
Form MO-5090 (Revised 10-2013)
Visit http://dor.mo.gov/business/corporate/ for
P.O. Box 3365 Fax: (573) 522-1721
additional information.
Jefferson City, MO 65105-3365 E-mail: corporate@dor.mo.gov
Mail to: Taxation Division Phone: (573) 751-4541

Net Operating Loss Addition Modification Sheet Instructions
Use this form for corporations that 1) reported a net operating loss (NOL) deduction for carryback years on the Federal Form 1120 -Line
29A, Federal Form 1139, or Federal Form 1120X and 2) used the loss to offset Missouri net positive additions in the year of the initial loss.
If both do not apply, there is no net operating loss modification. If both apply, then complete the net operating loss addition modification
worksheet. If the NOL deduction is the sum of multiple years, you must complete a Form MO-5090 for each loss year.
1. Enter on Line 1, Columns 1 and 4, the amount of the net operating loss deduction attributable to the loss year from Federal
Form 1120, Line 29a of the carryover year or from Federal Form 1139 or Federal Form 1120X for carryback years. This is the
amount of the deduction utilized in the current year.
2. Enter on Lines 2a through 2e all required additions from the loss year to federal taxable income, except for the net operating
loss modification. See Section 143.121.2(3), RSMo regarding the Missouri depreciation basis adjustment for Line 2d.
3. Add Lines 2a through 2d and enter the total on Line 3 to compute all required additions from the loss year to federal taxable
income.
4. Enter on Lines 4a through 4l all required subtractions from federal taxable income from the loss year. See
Section 143.121.3(2), RSMo and 12 CSR 10-2.020 regarding the reduction in gain due to basis difference for Line 4c. See
Section 143.121.3(7), RSMo regarding the Missouri depreciation basis for Line 4h. See Section 143.121.2(4), RSMo
regarding the net operating loss carryback previously disallowed for Missouri on Line 4i. See Section 143.121.3(9), RSMo
regarding the depreciation recovery on qualified property that is sold for Line 4j. See Section 108.1020, RSMo regarding the
build America and recovery zone bond interest for Line 4k. See Section 227.646, RSMo regarding the Missouri
Public-Private Partnerships Transportation Act for Line 4l.
5. Add Lines 4a through 4l and enter the total on Line 5 to compute all required subtractions from the loss year from federal taxable
income.
6. Subtract Line 5 from Line 3 and enter on Line 6 (but not less than zero). This will give you the net addition modification, as the
amount that all required additions exceeds all required subtractions.
7. Enter the total amount of the net operating loss from Federal Form 1120, Line 30 of the loss year in Column 3 and enter the tax
year of the net operating loss in the blank provided.
8. Enter the amount of the net operating loss deduction utilized in prior years from Federal Form 1120, Line 29a from all prior carryover
years of this loss year or from Federal Form 1139 or Federal Form 1120X from the carryback years.
9. Add Lines 1 and 8 and enter on Line 9
10. Add Lines 6 and 9 and enter on Line 10.
11. Subtract Line 7 from Line 10 (but not less than zero) and enter on Line 11.
12. Enter the lesser of Line 1 or 11 on Line 12 and also on Form MO-1120, Part 1, Line 3.
Note: You must specifically identify each loss year that is part of the net operating loss deduction and a separate Form MO-5090 must
be completed for each loss year.
Note: The above items are each considered to be a positive amount for purposes of this calculation. If the result of combining amounts
is negative, use zero.
Frequently Asked Questions
1. If a taxpayer has incurred a net operating loss, when is a net operating loss addition modification computed?
A net operating loss addition modification is computed when a net operating loss deduction is claimed. If there was a net
operating loss for the tax year 2012 and the taxpayer carried it back two years and claimed a net operating loss deduction on
an amended federal return for tax year 2010, then a net operating loss addition modification would be computed for the 2010
amended Missouri return.
2. Is the Net Operating Loss Addition Modification computed for the year of the loss?
No, it is computed for the year a net operating loss deduction is used.
3. If a taxpayer has claimed a net operating loss deduction on its federal return and in the year the initial loss was incurred,
its Missouri addition modifications are less than its subtraction modifications, does it have to compute a net operating loss
modification?
No, there is no net operating loss addition modification attributable to that net operating loss because in the year of the initial
loss, the Missouri addition modifications were less than the Missouri subtraction modifications.
4. If the net operating loss deduction is composed of net operating loss amounts from more than one year, is there more than one
net operating loss addition modification?
Yes, a net operating loss addition modification must be computed for each net operating loss included in the net operating loss
deduction.
5. If more than one net operating loss addition modification is computed, in what order are the amounts computed?
The net operating loss addition modifications are computed in the same order the net operating losses are used as net operating
loss deductions for federal income tax purposes.
Form MO-5090 (Revised 10-2013)